Harmonic Doubles EdgeQAM Capacity With New NSG(TM) 9000 Octal Technology.

Best-in-Class Support for 144 QAM Channels in Dense 2-RU Solution Satisfies Strong Demand for VOD, Modular CMTS and Switched Digital Video 

PHILADELPHIA -- Harmonic Inc. (NASDAQ:HLIT) today expanded the capabilities of its market-leading Narrowcast Services Gateway[TM] (NSG[TM]) 9000 universal edgeQAM by introducing its new Octal technology. The new 48-MHz or eight QAM field upgradable module doubles the existing NSG 9000 platform's capacity, to support up to 144 QAMs per two-rack unit chassis, significantly increasing density in comparison with solutions available today. As a result, cable operators can more easily and cost-effectively provide more services -- including video-on-demand (VOD), broadcast, modular cable modem termination system (M-CMTS) and switched digital video (SDV) -- using a single system.

The NSG with Octal technology also maximizes bandwidth utilization by providing significant flexibility in allocating individual frequencies across the 48 MHz spectrum, rather than as adjacent or contiguous block QAM channels. Increased video stream capacity and intelligent frequency allocation provide operators with a highly scalable and cost-effective means of expanding their on-demand services. Harmonic's best-of-breed edge technology also delivers superior RF performance, exceeding the DOCSIS RF Interface (DRFI) specification in a number of parameters. The new 48 MHz RF card supports a wide variety of cable network architectures, anywhere from 50 MHz to 1 GHz.

"The NSG's top market-share position is driven by Harmonic's continuous commitment to ongoing technology innovation in the edgeQAM category," said Yoav Derazon, Senior Manager of Cable Strategy and Solutions for Harmonic Inc. "By doubling the density of the NSG 9000 platform and providing for more versatile frequency allocation, the NSG with Octal technology enables our customers to flexibly and cost-effectively scale service delivery across their networks. This capability is critical for M-CMTS applications, as well as SDV and on-demand, providing a powerful tool for expanding much-needed bandwidth for new services such as HD VOD and more high-speed data."

Since its introduction, Harmonic's NSG platform has played a critical role in the cable industry's adoption of VOD. Today, the NSG 9000 universal edgeQAM uniquely supports VOD, nPVR, SDV, broadcast, M-CMTS and edge encryption applications. Harmonic's edge processing solutions are deployed by 9 out of 10 of the largest MSOs in the United States, and worldwide power more than three million VOD streams, serving over 50 million homes. Innovative operators around the world are implementing the NSG 9000 for M-CMTS applications -- Harmonic is rolling out services to more than 25 operators delivering over 50,000 DOCSIS downstream channels. The NSG 9000 has won several prestigious industry awards since its introduction, including being named the 2008 Technical Innovation of the Year by the SCTE UK.

The industry-leading NSG 9000 will be on display at Harmonic's booth #1753 at the SCTE Cable-Tec Expo, taking place in Philadelphia from June 24-27.

About Harmonic Inc.

Harmonic Inc. is a leading provider of versatile and high performance video solutions that enable service providers to efficiently deliver the next generation of broadcast and on-demand services including high definition, video-on-demand, network personal video recording and time-shifted TV. Cable, satellite, broadcast and telecom service providers can increase revenues and lower operational expenditures by using Harmonic's digital video, broadband optical access and software solutions to offer consumers the compelling and personalized viewing experience that is driving the business models of the future.

Harmonic (NASDAQ:HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company's customers, including many of the world's largest communications providers, deliver services in virtually every country. Visit www.harmonicinc.com for more information.

This press release contains forward-looking statements within the meaning of Section 27(A) of the Securities Act of 1933 and Section 21(E) of the Securities Exchange Act of 1934, including statements related to more easily and cost-effectively providing more services using a single system.

Our expectations and beliefs regarding these matters and the benefits expected from the NSG 9000 with Octal technology may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission including its recent Reports filed on Form 10-K and Form 10-Q. Harmonic does not undertake to update any forward-looking statements.

EDITOR'S NOTE - Product and company names used herein are trademarks or registered trademarks of their respective owners.